Credit cards offer great rewards, but they can also come with a variety of fees. Some are upfront and obvious. Others? Hidden in fine print.
In this guide, we break down every common credit card fee in India, so you can avoid surprises and maximize your card’s value.
📌 1. Joining Fee
This is a one-time fee you pay when you get the card. Usually ranges from ₹500 to ₹5,000, depending on the card’s level.
- Example: HDFC Regalia – ₹2,500 + GST
- Waiver: Many cards waive it based on usage or promo
👉 Some premium cards charge high joining fees in exchange for travel vouchers, airport lounge access, etc.
🔁 2. Annual Fee (Renewal Fee)
Charged once a year after the first year. Can range from ₹500 to ₹12,000+ depending on the card.
- Waiver: Often waived if you spend ₹1–₹3 lakhs/year
- Tip: Lifetime free cards = ₹0 annual fee forever
✅ Credofly’s Deck shows exact spend threshold for fee waiver on every card.
🌎 3. Foreign Currency Markup Fee
Charged when you use your card for international transactions — including online payments in USD, EUR, etc.
- Standard: 3.5% + GST
- Low Markup Cards: ~1.99% (e.g. IDFC Select, Axis Vistara)
- Zero Markup Cards: Rare – some Niyo, SBM or Forex cards offer this
💡 Always check this fee before booking travel or using foreign websites.
⛽ 4. Fuel Surcharge & Waiver
Normally, fuel spends attract a 1% surcharge. Some credit cards offer a waiver — but it’s usually capped.
- Example: ₹200/month maximum waiver
- Not eligible for rewards: Most cards don’t give points on fuel
⌛ 5. Late Payment Fee
If you don’t pay even the minimum due by the due date, banks charge a fee based on your outstanding balance.
| Outstanding | Late Fee (Typical) |
|---|---|
| < ₹500 | ₹100 |
| ₹501–₹5,000 | ₹500 |
| ₹5,001–₹10K | ₹750 |
| ₹10K+ | ₹950–₹1,200 |
🧠 Late payment also hurts your credit score — avoid it at all costs.
💰 6. Interest Charges (Finance Charges)
Charged when you don’t pay your total due. Varies by bank and profile.
- Range: 1.5% to 3.5% per month (18% to 42% annually)
- Zero interest if: You pay total bill before due date
💡 Smart users always pay 100% of bill to avoid interest.
🏧 7. Cash Advance Fee
Withdrawing cash using a credit card? Bad idea — it comes with:
- Fees: 2.5% or ₹300–₹500 minimum
- Interest: Starts from day 1 with no interest-free period
- No reward points
❌ Avoid unless it’s a real emergency.
🔄 8. Reward Redemption Fee
Some banks charge a processing fee when you redeem reward points.
- Typical: ₹99 to ₹149 per redemption
- Waived: On select premium cards
- Zero fee cards: IDFC Select, Axis Magnus, SBI Cashback
📞 9. Card Replacement & Misc Fees
Other possible charges:
- Card Replacement: ₹100–₹250
- Duplicate Statement Fee: ₹50–₹100
- EMI Processing Fee: 1% to 2% of the converted amount
- Overlimit Fee: 2.5% of amount exceeding limit
✅ Summary Table – Key Credit Card Fees
| Fee Type | Typical Range | Can You Avoid It? |
|---|---|---|
| Joining Fee | ₹0 – ₹5,000 | ✅ With LTF Cards or offers |
| Annual Fee | ₹0 – ₹12,000 | ✅ With annual spend waiver |
| Foreign Markup | 1.99% – 3.5% + GST | ❌ Unless card offers low/no markup |
| Late Payment | ₹100 – ₹1,200 | ✅ Always pay on time |
| Interest Charges | 1.5% – 3.5% per month | ✅ Pay full bill monthly |
| Cash Withdrawal | 2.5% + high interest | ❌ Avoid completely |
| Redemption Fee | ₹0 – ₹149 | ✅ Some cards charge zero |
| Overlimit Fee | 2.5% of excess amount | ✅ Stay under limit |
🧠 Final Tips to Avoid Credit Card Charges
- 🧾 Pay full bill every month — not just minimum due
- 🔁 Set auto-debit for total due
- 🆓 Choose lifetime free or low fee cards
- 🌐 Use low forex markup cards when abroad
- 📅 Track your due dates & reward redemption charges
- 🧠 Use the Credofly Stack to track fees, benefits, and renewal alerts
💬 FAQs
Q1: Do all cards have joining and annual fees?
A: No — there are many lifetime free cards with no joining or annual charges.
Q2: What happens if I only pay the minimum due?
A: You’ll be charged interest on the rest and your next bill will be higher.
Q3: Do banks charge interest on late fees?
A: Yes — interest applies to entire unpaid amount, including the late fee.
Q4: Is foreign markup fee charged on INR spends on global sites?
A: If the merchant is foreign (even if site shows INR), markup applies.
🟨 Spark Summary
Understanding credit card fees helps you use cards smartly, avoid hidden charges, and maximize net rewards. Pick the right cards and follow best practices to keep your costs at zero.